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Regional Income Evolution In South Africa After Apartheid

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  • Maarten Bosker
  • Waldo Krugell

Abstract

ABSTRACT South Africa is one of the wealthiest countries on the African continent. The high national level (and growth) of GDP per capita, however, masks significant differences in economic performance across South Africa's regions. This paper uses (spatial) Markov chain techniques to describe the evolution of the entire cross‐section regional income distribution in terms of its intra‐distributional characteristics during the post‐Apartheid period. The results indicate a heavily diverging regional income distribution. Relatively poor regions are likely to remain poor or become even poorer and the richest regions will maintain their lead in terms of income levels. Explicitly taking account of space furthermore shows that these high‐income regions are acting as local growth poles, absorbing economic activity from their immediate surroundings. Location, trade, education, and the variable fortune of the gold mining industry seem to be important determinants of the observed evolution.

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  • Maarten Bosker & Waldo Krugell, 2008. "Regional Income Evolution In South Africa After Apartheid," Journal of Regional Science, Wiley Blackwell, vol. 48(3), pages 493-523, August.
    • Handle: RePEc:bla:jregsc:v:48:y:2008:i:3:p:493-523
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    File URL: https://doi.org/10.1111/j.1467-9787.2008.00561.x
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    1. Sergio J. Rey & Wei Kang & Levi Wolf, 2016. "The properties of tests for spatial effects in discrete Markov chain models of regional income distribution dynamics," Journal of Geographical Systems, Springer, vol. 18(4), pages 377-398, October.
    2. Costanza Biavaschi & Giovanni Facchini & Anna Maria Mayda & Mariapia Mendola, 2018. "South–South migration and the labor market: evidence from South Africa," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 823-853.
    3. Fuad Hasanov & Oded Izraeli, 2011. "Income Inequality, Economic Growth, And The Distribution Of Income Gains: Evidence From The U.S. States," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 518-539, August.
    4. Jones, Jonathan & Wren, Colin, 2009. "The dynamics of FDI location: a markov analysis for British regions," LSE Research Online Documents on Economics 33497, London School of Economics and Political Science, LSE Library.
    5. Elizabeth Delmelle & Jean-Claude Thill & Chunhua Wang, 2016. "Spatial dynamics of urban neighborhood quality of life," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(3), pages 687-705, May.
    6. Cheong, Tsun Se & Wu, Yanrui, 2013. "Regional disparity, transitional dynamics and convergence in China," Journal of Asian Economics, Elsevier, vol. 29(C), pages 1-14.
    7. Wim Naudé & Maarten Bosker & Marianne Matthee, 2010. "Export Specialisation and Local Economic Growth," The World Economy, Wiley Blackwell, vol. 33(4), pages 552-572, April.

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